Experts see upturn of the weekend as negative harbinger for Bitcoin
Although Bitcoin was able to climb back up to 18,000 US dollars at the weekend, experts warn caution.
Bitcoin (BTC) today (November 29) broke the $18,000 mark, with the major crypto exchange Binance posting an interim high of $18,209. Despite the upturn over the weekend, investors remain cautious.
At $18,200, the crypto currency is showing resistance in the form of the 10-day moving average (10-Day MA). As Cointelegraph reported yesterday, some experts believe that Bitcoin Evolution will continue to fall before the uptrend can continue at a later date.
The trader under the pseudonym „Crypto Capo“ had already predicted when Bitcoin had slipped to 16,000 US dollars that it would initially drop back to 18,000 US dollars, which has now proved to be true.
However, this is not good news because, as he told his followers on November 27, when Bitcoin was still at $16,700, he wanted to sell immediately as soon as the market-leading crypto currency was back at $18,000.
When the recovery to $18,000 did indeed follow today, he made a small change of plan by buying new Bitcoin, thus creating a hedge in case the exchange rate goes up against expectations. A first confirmation of his original theory that Bitcoin will fall sharply after the jump to $18,000 would be a drop to $17,400.
If the price were to slide below this mark and then even fall below the 16,800 US dollar mark, a crash to just 14,000 US dollars would be all the more likely.
However, if Bitcoin were to climb above USD 18,400 and then settle at USD 18,200, this would refute his negative forecast, which he considers unlikely, but nevertheless possible. For this reason, he himself is pursuing a double-track approach.
Possible scenarios for Bitcoin
Another trader under the pseudonym „Loma“ takes the same score. After having been positive at a price of USD 17,500, he now claims to have sold almost half of his long position.
The trigger for this step is that Bitcoin, in his opinion, is heading for fierce resistance in the range of 18,200 – 18,400 US dollars. He writes accordingly:
„At 18,080 US dollars I have closed half of my long position. I don’t want to have too much on my books at the end of the week/month. As soon as we climb above $18,400, we will have enough buying opportunities again, but if it goes down, we won’t have many good opportunities to sell“.
There is still hope…
A technical analyst called „CryptoBirb“ adds that Bitcoin usually has two types of returns, either 15% or 30%.
He himself expects a downturn to $14,000, but, like his colleagues, does not believe this is set in stone. To this end, he refers to several technical indicators that support his assumption. For example, Bitcoin would be in oversold territory for the first time in its several-week climbing campaign:
„There are two types of downturn for BTC: either -15% or -30%. I am betting on a decline up to $14,000. It’s the first time we’ve come back to the middle and the first time we’ve been back in the oversold territory since the climb started. These are two VERY strong signs. However, I would be very happy to see a new record high before Christmas. And you?“
In order for the „desired“ upswing to a new record high to become a reality in the near future, Bitcoin would first have to climb above USD 18,400 before consolidating above this mark. Only then could the upswing continue.